Ten Basic Principles for Ethical Decision Making

Great principles are those that have produced successful companies over the years.  Former Vistage speaker Mac McNair highlights ten basic principles to utilize when faced with making ethical decisions:

1. A proper respect for the authority in your company. Authority goes three ways: up, down and lateral. “Unfortunately, we tend to work it only in one dimension,” says McNair. “Recognizing who the authority is in any situation and applying this principle in ethical decisions is more effective in the long haul.”
2. Singleness of purpose. Have a corporate purpose statement against which you can measure a particular alternative. “By definition, a business provides a product or service to someone, so include that in your corporate statement,” says McNair. “Profit is important, but it isn’t the main purpose of the business. The five recipients of any purpose statement are employees, management, customers, investors and community.”
3. Effective communication in word and deed. “Have good job descriptions for your people. Most conflict comes because people don’t understand each other, and they don’t understand each other because they don’t understand what the job is,” says McNair. Put things in writing.
4. Proper work, rest and recreation for your people. People need vacations and downtime to be with their families and recharge their energy and enthusiasm. “These times of rest should be clearly defined by the employer,” explains McNair.



5. Respect for elders. A study in Fortune magazine shows that the ancient concept of counsel with elders is highly effective. “One of the problems of business today,” laments McNair, “is downsizing by laying off all the ‘elders’.”
6. Respect for human life, dignity and rights. The personnel policies and procedures you have in place should address this issue. “Apply the ‘Golden Rule’ as the fundamental criterion for hiring and firing,” says McNair. “Satisfy customers’ needs with the best possible products and services and protect the health and safety of employees.”
7. Stability of the sexes and the family. “That is tough today because the definition of the family is so fluid,” McNair points out. “Every individual has the fundamental priority and responsibility for a strong family life. Offer equal opportunity for men and women and respect the dignity of each individual, single or married.”
8. Proper allocation of resources. “This has to do with effective asset management and organizational economy,” says McNair. “Pay your bills on time according to vendor agreements. Some of the aging we allow to happen today is questionable.”
9. Honesty and integrity in business dealings. Produce truthful company reports and have full disclosure in business dealings. “Honor commitments and show respect for others’ time by being on time yourself,” he says.
10. Maintain the right of ownership of property. “Manage company resources and assets toward promoting and protecting the free enterprise system, self-regulation and voluntary compliance,” he concludes.